Welfare Fraud

Understanding Welfare Fraud Under California Law

The California Welfare and Institutions Code (WIC) 10980 defines welfare fraud. A welfare program is any governmental assistance program to support individuals and their families. Eligibility criteria may include:

• Age.
• Socioeconomic status.
• Disability.

Welfare programs include food stamps, affordable housing, and family assistance. This system is contentious, with vocal proponents and detractors. Some believe it is the government’s responsibility to care for its most vulnerable citizens. In contrast, others argue that it is an overly intrusive investment in its citizens’ personal lives.

This is also a contentious subject because welfare funding is derived from collected taxes, and there is much discussion over how the government should allocate tax funds. Each jurisdiction is responsible for administering the federal government’s welfare monies, and many states have their own welfare initiatives in addition to federal ones.

California has the following state welfare programs:

• CalFresh offers monthly electronic food stamp benefits.
• California Work Opportunities and Responsibility to Kids or CalWORKs is California’s primary government assistance program. It offers needy families short-term assistance with clothing, housing, utilities, food, and medical care.
• GAIN or Greater Avenue for Independence—this program assists CalWORKs recipients in finding and maintaining employment, as well as advancing to better-paying positions.
• Medi-Cal—the state’s Medicaid initiative that offers health care to underprivileged Californians, is classified as a state welfare benefit, although it is charged independently from other types of welfare benefit fraud.
• General Assistance or General Relief (“GA/GR”)—GA/GR helps poor people who do not receive other public support benefits in California.

Welfare fraud happens when an individual sends their application for a relief program and makes false assertions or does not provide important information to acquire relief benefits to which he or she is not qualified. Each case is unique, and any California resident accused of specific fraud should consult a competent defense lawyer who will guide them through their legal options and rights.

Welfare fraud could also be characterized as:

• Intentionally providing false details or neglecting to provide important information to obtain, maintain, or increase unfair welfare benefits.
• Transferring, using, selling, acquiring, possessing, purchasing, forging, or changing authorizations to obtain food stamps is prohibited.
• Submitting several applications to receive multiple perks.
• Applying for relief programs under multiple names to receive various benefits fraudulently.

Investigation of Welfare Fraud

Local prosecutors in California receive cases involving welfare fraud from various sources. Most local district attorneys’ offices have welfare fraud departments focusing on prosecuting these crimes.

Prosecutors receive recommendations from the following:

1. The Social Services Agency.
2. Report any welfare fraud websites and hotlines.
3. Reporting hotlines across the state and other relevant agencies.

Welfare fraud detectives start their inquiries by reaching the designated recipients. They will question the recipients about the perks they are presently receiving and gather information about how they obtained those benefits. Detectives may also talk to friends, neighbors, family, and colleagues to collect additional information to verify or refute fraud allegations.

Aside from that, unplanned witness interviews and home visits frequently reveal more problems, for example:

• Child neglect or abuse.
• Elderly abuse.
• Drug-related crimes.
• Domestic violence.

Consequently, organizations like:

1. Adult Protective Services (APS).
2. Child Welfare Services.
3. Family Support Services.

Any other entities related to this case may become engaged in the ongoing investigation. When an investigator has gathered all pertinent information, they present it to the prosecution, who will analyze it to assess whether a criminal case is warranted.

Suppose the District Attorney decides there is sufficient proof to prosecute. In that case, he or she will bring criminal charges. Alternatively, the prosecution team will consider the following:

• The case may be referred to the detective for additional information.
• Rejected due to insufficient evidence.
• Placed in a diversion program.
• Restitution may be sought instead of criminal prosecution.

Welfare Fraud Examples

Below are two classifications of welfare fraud:

Recipient Fraud

10980 WIC defines recipient fraud as fraud perpetrated by persons who obtain or fraudulently attempt to obtain benefits from the government to which they are not legally entitled.

Although numerous ways exist to perpetrate recipient fraud, some methods are more widespread than others. Some of the most typical examples of welfare fraud in California occur when someone attempts to obtain illegal benefits by:

• Arguing to be from a single-parent family while the minor’s other parent resides in the same household (also called “absent parent residing in the same home”).
• Declining to record additional perks or income.
• Submitting a complaint for a minor not residing at home.
• Filing claims for ineligible or non-existent children.
• Taking benefits from other states along with those earned in California.

Internal Fraud

Internal fraud occurs when a staff member of a state agency providing welfare benefits tries to collect or allocate illegal benefits from the agency.

An “inside job” usually involves an eligibility worker falsifying applications for unqualified friends or relatives and splitting the profits. Workers may fabricate phony children, make misleading income claims, or neglect to report information that could prevent their family and friends from obtaining benefits illegally.

People convicted of domestic fraud face charges and other related offenses. They are also facing charges of embezzlement. You violated Penal Code (PC) 503, California’s embezzlement legislation, also called employee theft. It applies when you wrongfully take funds or other properties assigned to you.

This implies that if a defendant works as a social service worker who assists in regulating how welfare relief benefits are allocated– or understands how to circumvent processes required before benefits are approved– and they embezzle these benefits, they could face a maximum of 3 years in prison. If a defendant misappropriated any amount above $65,000, he or she might incur an extra 1 to 4 years behind bars.

What Happens If An Individual Commits Welfare Fraud?

A defendant’s penalty under WIC 10980 will be determined by the section of the code they violated. Some are misdemeanors, some are straight felonies, and others are known as wobblers. A “wobbler” refers to an offense that can be penalized as a misdemeanor or felony, depending on certain circumstances. These include:

• The specifics of the case.
• Your criminal history.

Penalties for California Welfare Fraud

According to the Welfare and Institutions Code (WIC) Section 10980, this crime could be charged as a misdemeanor or a felony crime. It is generally referred to as a “wobbler crime,” and the charges you face will be determined by the particular value of the benefits obtained and your past criminal convictions.

If a defendant is guilty of providing misleading or false information to obtain benefits as per WIC 10980(a), penalties can include a maximum of 6 months behind bars and a $500 fine.

Misleading or False Statements

Giving misleading and false statements to obtain welfare benefits is considered a crime. If found guilty of misdemeanor welfare fraud, you could face a maximum of 6 months behind bars and a $500 fine.

Filing Fraudulent Applications

Filing a fraudulent application under WIC 10980 b is considered a “wobbler offense” and could result in a felony or misdemeanor penalty. If you file multiple applications, apply for any benefit under a false name, or use fraudulent identification, you will most likely be convicted of filing false applications.

If you have been found guilty of misdemeanor charges of fraudulent application, you might face up to twelve months behind bars and a $1,000 fine. A felony charge for fraudulent application includes a potential sentence of sixteen months, 2 years, or 3 years, and a $5,000 fine.

Receiving or Keeping Benefits

If you or a loved one is guilty of procuring or receiving fraudulent welfare assistance under WIC 10980 c, you will be charged with a misdemeanor offense if the benefit is worth at least $950. A conviction can result in a maximum of 12 months behind bars and a fine not exceeding $500. If you received greater than $950 in welfare assistance, the legal consequences could include a maximum of 3 years in prison and a $5,000 fine.

Food Stamp Fraud (WIC 10980 f)

If a defendant is found guilty of committing food stamp fraud, you could face felony or misdemeanor charges. If the total amount of the benefit obtained was $950 or less, the offense is classified as a misdemeanor, indictable by at least 6 months behind bars and a $1,000 fine.

If the total value of alleged welfare payments surpasses $950, it is charged as a felony punishable by a maximum of 3 years in prison and a $5,000 fine. You may face additional sentences if you commit welfare fraud utilizing electronically transferred funds. The added penalties include up to 4 years in a state prison.

Food Stamp Blank Authorizations

If you are found guilty of violating Welfare and Institutions Code 10980(d) by using unauthorized blank authorizations to participate in food stamp programs, you will face felony charges. The legal consequences include imprisonment for sixteen months, 2 or 3 years, and a $5,000 fine.

Electronic Benefits Transfer

You can face more penalties if:

• The crime involved an electronic transfer of benefits.
• You were found guilty of welfare fraud.

In addition to the sentences for welfare benefits fraud, you risk facing the following:

1. If the transferred amount of welfare benefits surpass $50,000, the offender faces one year in prison.
2. If the benefits transferred exceed $150,000, the time frame is two years.
3. Four years when the amount transferred surpasses $2,500,000.
4. If this transfer surpasses $1,000,000, you will be charged with three years.

Additional Penalties

Being found guilty of welfare benefit fraud entails the following consequences along with those outlined above:

• Deportation or expulsion of an alien or legal immigrant.
• Professional disciplinary measures if you have a license (since convictions for crimes can influence occupational licenses), particularly when the offense is designated as an offense of moral depravity, as is generally the matter with fraud crimes.
• Ineligibility to receive future public support benefits.

Fighting Welfare Fraud Charges

Fortunately, an expert fraud defense attorney can provide a range of legal arguments on a defendant’s behalf. The examples below are some common defenses.

You Did Not Have Any Intention To Commit Fraud

Regardless of whatever California fraud laws the prosecution accuses you of breaking, they cannot sentence you unless they demonstrate that you intend to commit fraud. If the prosecution team cannot show that your actions were meant to deceive, the court will order the jury to declare you “not guilty” of the allegations.

This implies that your criminal defense lawyer may claim that:

• You made a reasonable claim for welfare benefits.
• You did not realize you had to report gifts, lottery winnings, or inheritances to the relevant departments.
• You simply failed to update your position when one of your dependents became ineligible for welfare benefits.
• Insufficient evidence.

Imagine you are charged with internal fraud. Your employer can report you if he or she has caught you with:

• Several duplicate files.
• Records that were frequently missing from the case files.
• You made questionable contact with the applicants.

Although this evidence appears incriminating, it is not conclusive. Even if the proof suggests that the accused was misappropriating funds, they must be acquitted unless the prosecution can provide actual proof. You are legally entitled to an acquittal until the prosecutor can prove your guilt beyond any reasonable doubt.

Mistaken Identity or False Allegations

This defense is most effective against claims of internal welfare fraud. However, it may also apply to recipient welfare fraud.

Even if there is a credible allegation of benefit fraud, this does not necessarily imply that the accused is the convicted party. They could face accusations of internal fraud. However, if the candidates are family or friends, they may be attempting to take advantage of your role in the department.

Perhaps they entered false details on their applications, and since you were close, you felt they were supplying valid information and did not take the necessary steps to prove it. This form of negligence may warrant your dismissal. So, you should not be prosecuted.

Compulsion and Coercion

Coercion is an unethical and harmful practice, particularly in marital disputes. One spouse may force the other to conceal or lie about aspects of their lives. An egregious example is when a spouse coerces their partner to pretend they are divorced or separated to fraudulently receive additional single-parent benefits.

Furthermore, there are circumstances in which one spouse may impose the idea of foster care on the other solely to obtain foster benefits. Entering the foster care system can be an experience for which they are not fully prepared, and the child in their care may suffer as a result.

Compulsion also impacts individuals who could be coerced into revealing their identification information to fraudsters eager to obtain such information through any means necessary.

In your defense, your attorney should demonstrate that you had no other option than to take action and that the compulsion was forceful, including the threat of causing harm or even loss of life if you did not comply.

Restitution Agreements

Welfare fraud prosecutors are primarily concerned with recovering money for the county or state. Suppose you can refund all or a significant portion of the money you are accused of misappropriating. In that case, the prosecution is frequently willing to reduce the charge or agree to a shorter sentence.

Related Offenses

Since California welfare benefits fraud typically incorporates claims of forgery, theft, and perjury, the prosecution may pursue the offenses listed below instead of or along with the Welfare and Institutions Code (WIC) 10980.

California’s Grand Theft Charge PC 487

California’s grand theft laws make it illegal to take another person’s or entity’s property valued at more than $950. “Property” refers to money, personal property, land, or labor. This implies that when you deceitfully receive unemployment benefits totaling greater than $950, the prosecution could put you on trial for a wobbler offense, punishable by:

Possible penalties include 16 months, 2 or 3 years behind bars, and a maximum fine of $10,000

Forgery Law PC 470

California’s forgery law forbids deliberately modifying, using, or producing a written record with the intent to perpetrate fraud. Prosecutors may charge you with forgery if you use altered or counterfeit food stamps, seek welfare benefits under someone else’s identity, or knowingly utilize them. If found guilty of forging, you will face wobbler charges.

A felony is chargeable by:

• Possible penalties include 16 months, 2 or 3 years in jail.
• A maximum fine of $10,000.

California’s Perjury Law PC 118

California’s perjury statute is classified as a felony under Penal Code 118. It exposes you to:

• Possible penalties include up to 2, 3, or 4 years behind bars.
• A fine of $10,000.

You commit perjury when you intentionally provide misleading details while under the pledge, to be honest. This implies that if, say, you seek for social benefits:

• Using a fictitious name.
• Using a counterfeit social security number.
• With other deliberately falsified facts while applying.

California’s Conspiracy Law PC 182

California’s conspiracy legislation makes conspiring to engage in a crime illegal. Suppose you arrange to perpetrate an illegal act to obtain false welfare payments along with another person. In that case, you face felony charges punishable by similar penalties as a California welfare benefits fraud conviction.

Conspiracy charges will likely be brought along with a fraud case in which the employee arranged for illegal proceeds to be provided to their family or friends.

Diversion Program in Welfare Fraud Cases

In some situations, you may qualify for a diversion program, which allows you to have your fraud charges removed once you have repaid the benefits you received. You could also create a payment plan for a specific monthly amount.

The diversion program aims to reduce harsh legal consequences for first-time offenders. In some instances of welfare fraud, completing diversion programs can keep them out of jail. Normally, you can admit guilt in court and consent to repay all welfare payments you were not eligible to receive.

You must pay the full amount before returning to court, after which the presiding judge will drop the charges. If you disagree, the judge will revert to your guilty plea and sentence you accordingly. This kind of diversion program is appropriate for individuals who have little or no past criminal activity, are not facing additional criminal charges, and have not received a significant sum of money in benefits.

What Qualifies as Calworks Fraud?

Welfare fraud occurs when someone asks for public support and makes false claims or fails to provide important information to acquire benefits for which they are not eligible.

What Does a Welfare Fraud Investigator Do?

A welfare fraud investigator analyzes and assesses evidence and/or claims of welfare fraud. An appropriate investigation plan is developed and implemented based on the facts gathered. The investigator also discusses charges of possible welfare fraud with eligibility and social work professionals to explain the results and establish facts.

How Long Do Welfare Investigations Take?

Unfortunately, we cannot predict the duration of an investigation. The nature of the claims determines the time period, the number of interviews that must be conducted, and the number of investigations that have already been initiated in the office.